Novanta
Market Cap
US$3.5b
Last Updated
2020/02/19 00:09 UTC
Data Sources
Company Financials +
Executive Summary
Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential with mediocre balance sheet.
Similar Companies
Share Price & News
How has Novanta's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NOVT has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.5%
NOVT
-2.3%
US Electronic
0.06%
US Market
1 Year Return
25.8%
NOVT
7.7%
US Electronic
19.4%
US Market
Return vs Industry: NOVT exceeded the US Electronic industry which returned 7.7% over the past year.
Return vs Market: NOVT exceeded the US Market which returned 19.4% over the past year.
Shareholder returns
| NOVT | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.5% | -2.3% | 0.06% |
| 30 Day | -1.5% | -6.2% | 1.1% |
| 90 Day | 12.9% | 1.1% | 8.9% |
| 1 Year | 25.8%25.8% | 8.8%7.7% | 21.9%19.4% |
| 3 Year | 293.4%293.4% | 34.4%30.8% | 48.9%39.3% |
| 5 Year | 609.4%609.4% | 66.6%58.5% | 71.9%53.1% |
Price Volatility Vs. Market
How volatile is Novanta's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Novanta's (NASDAQ:NOVT) Wonderful 624% Share Price Increase Shows How Capitalism Can Build Wealth1 week ago | Simply Wall St
Is Novanta Inc.'s (NASDAQ:NOVT) CEO Salary Justified?3 weeks ago | Simply Wall St
Here's Why I Think Novanta (NASDAQ:NOVT) Might Deserve Your Attention TodayValuation
Is Novanta undervalued compared to its fair value and its price relative to the market?
77.9x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NOVT ($96.19) is trading above our estimate of fair value ($61.82)
Significantly Below Fair Value: NOVT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NOVT is poor value based on its PE Ratio (77.9x) compared to the Electronic industry average (19.6x).
PE vs Market: NOVT is poor value based on its PE Ratio (77.9x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: NOVT is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: NOVT is overvalued based on its PB Ratio (8.4x) compared to the US Electronic industry average (1.9x).
Next Steps
Future Growth
How is Novanta forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
30.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOVT's forecast earnings growth (30.4% per year) is above the savings rate (1.7%).
Earnings vs Market: NOVT's earnings (30.4% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NOVT's revenue (5.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: NOVT's revenue (5.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if NOVT's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Novanta performed over the past 5 years?
34.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NOVT has a large one-off loss of $15.9M impacting its September 27 2019 financial results.
Growing Profit Margin: NOVT's current net profit margins (6.9%) are higher than last year (6.4%).
Past Earnings Growth Analysis
Earnings Trend: NOVT's earnings have grown significantly by 34.5% per year over the past 5 years.
Accelerating Growth: NOVT's earnings growth over the past year (11%) is below its 5-year average (34.5% per year).
Earnings vs Industry: NOVT earnings growth over the past year (11%) underperformed the Electronic industry 14.6%.
Return on Equity
High ROE: NOVT's Return on Equity (10.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Novanta's financial position?
Financial Position Analysis
Short Term Liabilities: NOVT's short term assets ($296.9M) exceed its short term liabilities ($124.9M).
Long Term Liabilities: NOVT's short term assets ($296.9M) do not cover its long term liabilities ($330.2M).
Debt to Equity History and Analysis
Debt Level: NOVT's debt to equity ratio (56.5%) is considered high.
Reducing Debt: NOVT's debt to equity ratio has increased from 48.9% to 56.5% over the past 5 years.
Debt Coverage: NOVT's debt is well covered by operating cash flow (21.9%).
Interest Coverage: NOVT's interest payments on its debt are well covered by EBIT (8.3x coverage).
Balance Sheet
Inventory Level: NOVT has a high level of physical assets or inventory.
Debt Coverage by Assets: NOVT's debt is covered by short term assets (assets are 1.3x debt).
Next Steps
Dividend
What is Novanta's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate NOVT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate NOVT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NOVT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NOVT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NOVT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Matthijs Glastra (50yo)
3.4yrs
Tenure
US$3,984,613
Compensation
Mr. Matthijs Glastra has been the Chief Executive Officer and Director of Novanta Inc. (alternate name: GSI Group Inc.) since September 1, 2016 and was its Executive Officer since September 2012. Mr. Glast ...
CEO Compensation Analysis
Compensation vs Market: Matthijs's total compensation ($USD3.98M) is about average for companies of similar size in the US market ($USD4.89M).
Compensation vs Earnings: Matthijs's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.4yrs | US$3.98m | 0.30% $10.3m | |
| Chief Financial Officer | 8.9yrs | US$1.75m | 0.46% $15.9m | |
| Chief Human Resources Officer | 3.2yrs | US$888.23k | 0.055% $1.9m | |
| VP, Corporate Controller & Chief Accounting Officer | 8.5yrs | no data | 0.071% $2.4m | |
| Group President of Photonics | 3.6yrs | no data | no data | |
| Group President of Precision Motion | 3.3yrs | no data | no data | |
| Group President of Minimally Invasive Surgery | 1.8yrs | no data | no data |
3.4yrs
Average Tenure
50yo
Average Age
Experienced Management: NOVT's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.4yrs | US$3.98m | 0.30% $10.3m | |
| Independent Chairman of the Board | 9.6yrs | US$250.00k | 1.89% $65.3m | |
| Independent Director | 9.6yrs | US$140.00k | 0.0028% $97.8k | |
| Independent Director | 7.7yrs | US$125.00k | 0.0028% $97.8k | |
| Independent Director | 0.8yrs | no data | no data | |
| Independent Director | 2.8yrs | US$125.00k | 0.0028% $97.8k | |
| Independent Director | 1.8yrs | US$80.50k | 0.0028% $97.8k | |
| Independent Director | 7.7yrs | US$127.86k | 0.0028% $97.8k |
5.5yrs
Average Tenure
58yo
Average Age
Experienced Board: NOVT's board of directors are considered experienced (5.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NOVT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Novanta Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Novanta Inc.
- Ticker: NOVT
- Exchange: NasdaqGS
- Founded: 1968
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: US$3.457b
- Shares outstanding: 35.07m
- Website: https://www.novanta.com
Number of Employees
Location
- Novanta Inc.
- 125 Middlesex Turnpike
- Bedford
- Massachusetts
- 1730
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NOVT | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Sep 1995 |
| 1GSN | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Sep 1995 |
| 0VAG | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Sep 1995 |
| NOVT N | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Sep 1995 |
Biography
Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. The company’s Photonics segment offers photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products for photonics-based applications, such as industrial material processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. Its Vision segment provides a range of medical grade technologies, including medical insufflators, pumps, and related disposables; visualization solutions; wireless imaging and operating room integration technologies; optical data collection and machine vision technologies; radio frequency identification technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions. The company’s Precision Motion segment offers optical and inductive encoders, precision motors, motion control sub-assemblies, air bearings, air bearing spindles, and precision machined components. It sells its products through its direct sales force, resellers, distributors, and system integrators under the Cambridge Technology, Lincoln Laser, ExoTec Precision, Synrad, Laser Quantum, WOM, NDS, NDSsi, Reach Technology, JADAK, ThingMagic, Photo Research, General Scanning, Celera Motion, MicroE, Applimotion, Zettlex, and Westwind brands. The company was formerly known as GSI Group, Inc. and changed its name to Novanta Inc. in May 2016. Novanta Inc. was founded in 1968 and is headquartered in Bedford, Massachusetts.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 00:09 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/09/27 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.